'Firing on all cylinders': Wall Street strategists expect a strong quarter of earnings growth

Wall Street strategists expect a strong quarter of S&P 500 earnings growth, powered by resilient margins, AI-driven tech spending and robust bank results. FactSet and strategists forecast roughly 12% year-over-year earnings growth for the S&P 500, and analysts have lifted EPS estimates for 2026. While optimism centers on big tech hyperscalers (Alphabet, Amazon) and improving financials and energy margins, firms like Citi warn of a sectoral divide where tech and semiconductors must “beat and raise” to sustain the rally. Investors are seeking earnings momentum to validate the market rebound; the outlook is constructive but cautious about the second half of 2026.